report on indian plastic industry · k. k. seksaria president plastindia foundation i am happy to...

Report on The Indian Plastics Industry January 2018 | Edition 2

1

K. K. Seksaria President Plastindia Foundation

I am happy to present this 2nd Edition of the “Report on The Indian Plastics Industry”.

Plastics Industry Status Report Committee, headed by Mr. Francis Pinto, has taken pains to

compile from available dependable sources, statistics relating to Plastics and Polymer Industry.

A large number of Plastics Processing Units are in M.S.M.E. and in the unorganized sector.

Further, the Plastics industry is a very fast growing sector and various growth drivers are influencing

its pace and direction significantly. In such circumstances, the compilation of Industry’s statistics and

future projections is a very challenging task. The Committee has done its best to provide a very

informative report.

I am sure this will be useful to the Members of the Plastics Industry.

Best Wishes,

PRESIDENT’S MESSAGE

CHAIRMAN’S MESSAGE, NATIONAL EXECUTIVE COUNCIL

Rajeev Chitalia Chairman, N.E.C. PLASTINDIA 2018

The Indian Plastics Industry report 2018 is one of the significant attempts by PLASTINDIA FOUNDATION to provide every practising PLASTICS professional an insight into the rapid progress that the industry has taken over the last few years. This report compiled by some of the best minds from the Indian Plastics Industry, headed by Mr. Francis Pinto is truly a valuable document that brings together statistical data from across the board, encapsulating all aspects of the plastics processing, manufacturing and finished goods segment.

On behalf of the entire team of the National Executive Council of PLASTINDIA 2018, I express my gratitude to the Report Committee for working tirelessly to bring this document out in time and coinciding it with PLASTINDIA 2018. This report will be of great relevance and use to all exhibitors and visitors from both India and Overseas, and will give them first hand information on the Indian Plastics Industry.

I would encourage all to study the report in detail, as this could possibly be the blue print that will help shape the growth of the Indian Plastics Industry and also empower our industry with the facts and figures that will boost the progress of Indian Plastics

Best Wishes,

PLASTINDIA MANAGING COMMITTEE

4

Name Chair

Mr. K. K. Seksaria President

Mr. Rajiv Raval Vice President

Mr. Raju D. Desai Hon. Treasurer

Mr. Subhash K. Kadakia Imm. Past President

Mr. Ashok Jajodia Member

Mr. Nitin Shah Member

Mr. Jayesh K. Rambhia Member

Mr. Atul H. Kanuga Member

Dr. E. Sundaresan Member

Mr. Rajeev Chitalia Member

Mr. Pradip Thakkar Member

Mr. V. K. Taparia Member

Mr. Gautam H. Gandhi Member

Prof. (Dr.) S. K. Nayak Member

Mr. M. K. Mandal Member

Mr. Kamal P. Nanavaty Member

Mr. Mahendra N. Patel Member

INDUSTRY STATUS REPORT COMMITTEE Name Company Chair

Mr. Rajeev Chitalia Electrofocus Electricals Pvt. Ltd. Convenor

Mr. Francis Pinto Consultant Chairman

Mr. Prem G. Manghani Consultant Co-Chairman

Dr. E Sundaresan Consultant Member

Mr. Achal N. Thakkar Tipco Industries Ltd. Member

Mr. Hemant Minocha Rajiv Plastics Ltd. Member

Mr. N. K. Balgi Milacron India Pvt. Ltd. Member

Mr. Chanchal Dasgupta Borouge (India) Pvt Ltd. Member

Ms. Malini Hariharan ICIS Member

Mr. Rajendra Sharma Milacron India Pvt. Ltd. Member

Mr. Sachin Unde SABIC Member

Mr. T. K. Bandopadhyay Indian Centre for Plastics in the Environment Member

Mr. Rajiv Trivedi Prasad Koch Technik Pvt. Ltd. Member

Mr. Paresh Panchal TAGMA Member

5

Polymer Manufacturing

Capacity

17-20

India Overview

7-16

Plastics Recycling

42-47

Machinery Manufacturing

Industry

48-56

Imports Exports 35-41

Masterbatch

32-34

Sector wise Polymer

Consumption

27-31

Polymer Growth Opportunities

62-72

Conclusion

73-76

6

India Polymer Consumption

21-26

Auxillary Equipment

57-61

Index

• Population 1.3 Billion

• Largest parliamentary democracy

• Secular state – Unity in Diversity

• Independent judiciary

• 23 official languages, business language predominantly English

• Excellent social infrastructure - education, healthcare, travel & recreation

• Third largest economy on PPP basis (~USD 8.7 Trillion)

…..land of billion opportunities 8 Source: World Bank

India Snapshot

Large potentially productive workforce

Working Age Population as % of Total Population (Age 15 – 64)

• 65.8% of India in the working age group • Median age – 27.6 years

Source: World Bank / CIA World Factbook 9

Demographic Profile

India has second highest GDP and highest GDP growth rate among BRICS

Source: CIA 10

Country Area (Million Sq. KM)

Population (Million)

GDP (PPP) Billion USD

GDP Growth %

(2016)

China 9.59 1379 21290 + 6.7

Russia 17.09 142 3862 - 0.2

Brazil 8.52 207 3141 - 3.6

South Africa 1.22 56 687 + 0.3

India 3.29 1281 8701 + 7.1

India among Peers

11 Source: Reserve Bank of India / Ministry of Finance

Indian Economy

(Figs in %) 2013-14 2014-15 2015-16 2016-17

GDP Growth 4.9 7.2 7.6 7.1

Growth (Constant Prices)

Agriculture 4.6 -0.1 0.6 4.8

Industry 0.7 8.5 10.2 7.0

Service 6.9 8.9 9.0 6.9

Inflation WPI - Average 5.9 6.3 5.6 3.5

Interest Rate Lending Rate 8.4 10.0–10.2 9.3– 9.7 8.9– 9.1

Exchange Rate

Re / USD (Annual Avg.) 60.6 62.5 66.3 63.7

Fiscal Deficit As a % of GDP 4.5 2.4 3.3 3.5

Growth in GDP components

GDP Growth Strong Relation to Petrochemical Growth 12 Source: PLASTINDIA FOUNDATION

Year GDP Growth

Polymer Consumption

Growth

Import Duty

1990-1995 5.0% 12.9% 50%+

1995-2000 6.5% 14.6% 40%

2000-2004 5.9% 5.8% 45%-15%

2005-2012 8.7% 10.9% 12.5%-5%

2012-2017 12th plan

7.2% 10.6% 7.5%-5%

2017-2022 13th plan

8% 10.4% 5%-0%

Outlook – Indian Plastics Industry

• Economic Advantage

• 10th largest economy globally; 3rd largest by PPP

• Indian equity market is 4th biggest in Asia

• Demographic Advantage

• Emergence of middle class : rising household income

• Growing consumer market : booming retail sector

• Large workforce : highly skilled and educated

• Large English speaking population

• Urbanisation

• 31% -2010 to 35% -2020

13 Source: PLASTINDIA FOUNDATION

Growth Drivers for India - Key Indicators

• Higher productivity to help India sustain over 8% GDP growth

• Growth sectors: Agriculture, Healthcare, Solar Energy, Consumer Durables, Packaging Sector and Defence

• Automobile production to increase due to domestic and export market

• New joint ventures and increased R&D spending

•“Make in India” initiative to attract investments

• Infrastructure (Rail, Road & Ports) investment – government aim to attain global standards

14 Source: PLASTINDIA FOUNDATION

Growth Drivers for India - Key Indicators

India – The Vibrant Economy Source: Ministry of Commerce & Industry, Government of India

India’s International Trade

15

16

Total Exports (2016-17, USD 275 bn) Total Imports (2016-17, USD 380 bn)

Source: Reserve Bank of India

India’s Trade Basket

New capacity addition by 2019/20 : 1700 KTA 18

Existing/Future – Manufacturing Capacity - Major players (Thermoplastics) COMPANY LDPE LLDPE HDPE PP PVC PS/EPS PET Others 2016-17 % SHARE 2019-20 % SHARE

Reliance Industries 205 445 500 2700 725 970 5545 39.36 6545 41.46

Indian Oil Corp 225 475 600 1300 9.23 2000 12.67

Haldia Petrochemicals 210 500 390 1100 7.81 1100 6.97

GAIL (India) 350 570 920 6.53 920 5.83

HPCL Mittal Energy 440 440 3.12 440 2.79

IVL Dhunseri Petrochem 480 480 3.41 480 3.04

Supreme Petrochem 340 340 2.41 340 2.15

Finolex Industries 270 270 1.92 270 1.71

Chemplast Sanmar 290 290 2.06 290 1.84

LG Polymers India 130 130 0.92 130 0.82

Ineos Styrolution 105 80 185 1.31 185 1.17

ONGC PetroAdditions Ltd 360 700 340 1400 9.94 1400 8.87

Mangalore Refinery & Petrochemicals Ltd 440 440 3.12 440 2.79

Bhramaputra Cracker & Polymer Ltd 110 110 60 280 1.99 280 1.77

DCW 90 90 0.64 90 0.57

DCM Shriram 60 60 0.43 60 0.38

Gujarat State Fertilizers Ltd 12 12 0.09 12 0.08

Bhansali Engineering Polymers 60 60 0.43 60 0.38

Others 24 622 100 746 5.30 746 4.73

TOTAL 205 1700 2855 4970 1435 599 2072 252 14088 15788

(Figs in KTA)

Source : PLASTINDIA FOUNDATION

Source : PLASTINDIA FOUNDATION 19

Vadodara (RIL), (GSFC)

Nagothane (RIL)

Ratnagiri

(SUPREME)

Jamnagar (RIL)

Pata (GAIL)

Bhatinda (HMEL)

Panipat (IOCL)

Haldia (HPL), (DHANUSERI)

Visakhaptnam (LG)

Bharuch (RIL)

Mettur (CHEMPLAST)

Cuddalore (CHEMPLAST)

Sahupuram (DCW)

Kota(DCM)

Lapetkata (BCPL)

Mangaluru (MRPL)

Plant locations of major players

Hazira (RIL)

Sarigam (JBf)

Dahej (OPAL)

Pune (Finolex)

Polymer 2016-17 2019-20

PS/EPS 599 599

LDPE 205 605

LLDPE 1700 2300

HDPE 2855 2855

PP 4970 5670

PET 2072 2072

PVC 1435 1435

Others 252 252

Total 14088 15788

(Figs in KTA)


HPCL- GAIL

Kakinada

CHEMPLAST Puducherry

HMEL Bhatinda

Projects beyond 2019-20 (Thermoplastics)

22

Virgin Polymer consumption in 16-17 15500 KT

India Per Capita Consumption (Virgin Polymer) 12 kg

No of Processing units ~40,000

No of processing Machines ~141,000

Processing Capacity 41200 KT

Processing Capacity CARG 11% last 5 years

No. of plastics machinery manufacturing units ~500

Investment in Machinery ~USD 5 Bn

Investment required for next 5 years ~USD 4.37 Bn (Projected)

Source : Industry

Polymer Processing Industry Overview

23

(Thermoplastic + Thermoset)

Consumption 15500KT (2016/17) 20000KT (2019/20):- 9% CARG

Others* CPVC – 110 TPE – 18 TPU – 15

(Figs in KTA)


Total Polymer Consumption : 2016-17

24

Consumption : 14550 KT (2016/17)

18910 KT (2019/20):- 9% CARG

Consumption : 950 KT (2016/17)

1090 KT (2019/20):- 4.5% CARG

Thermosets


Polymer Consumption : 2016-17 Thermoplastics

25

Consumption:- 638KT - (2016-17), 819KT - (2019-20):- ~9% CARG

(Figs in KTA)


Engineering Plastics Consumption 2016-17

Note: Mainly for export; local consumption only 10-15% of capacity

26

MANUFACTURER PLASTICS CAPACITY

(TPA) MAJOR APPLICATIONS

Solvay Specialties (Panoli)

Polyether Sulfone (PES) 2000 Chip Trays, Electricals, Membranes

Polyether Ether Ketone (PEEK) 1000

Stock Shapes, E&E, Cables, Gen. Engineering, Oil & Gas

Solvay/Rallis (Ankleshwar)

Polyether Ketone Ketone (PEKK) 110 CF Composites for Aerospace

Gharda Chemicals (Ankleshwar)

Polyether Ketone (PEK) 100 Stock shape, Cable, Gen. Engineering

Polyether Ketone Ketone (PEKK) 50

Electronics, Oil Fields, Gen. Engineering, 3D Printing

PolyBenzimidazole (ABPBI) 25

Blends with PEK, Fire Resistant Fiber, Membranes for High Temp Fuel Cells

High End Engg. Polymers Production


28

PE : Demand – 4600KT (2016/17) – 5900KT (2019/20) : ~9% CARG

(Figs in KTA)

PE Sector wise Consumption – 2016-17



Raffia, 1427, 33%

Inj Moulding, 1640, 37%

BOPP, 524, 12%

TQ, 278, 6%

F&F, 359, 8%

Ext Coating, 105, 2%

Others, 75, 2%

PP : Demand – 4400KT (2016/17) – 6380KT (2019/20) : ~13% CARG

(Figs in KTA)

PP Sector wise Consumption – 2016-17


PVC : Demand – 3000KT (2016/17) – 3900KT (2019/20) : ~9% CARG

(Figs in KTA)

PVC Sector wise Consumption – 2016-17


Bottle, 800

Film, 429

Sheets, 6 IM, 3

MB, 3

Strapping, 11

Other, 23

PET : Demand – 1275KT (2016/17) – 1650KT (2019/20) : ~9% CARG

(Figs in KTA)

PET Sector wise Consumption – 2016-17

33

Masterbatch manufacturing units in India – about 250nos

Masterbatch Demand (KT) 2016-17 2019-20

White/Black/Colour/Additive

Filler Masterbatch

360

762

605

1035

Total 1122 1640


Masterbatch – Current Scenario

34

• Performance masterbatches; cling, anti-bacterial, anti-static, anti-fog, foaming agents, etc.

• Packaging sector

• Infrastructure

• Raffia

• Plasticulture

• Automotive and Appliance


Masterbatch – Growth drivers

36

Polymer Imports 2016 – 2017 : 4200KTA Source : PLASTINDIA FOUNDATION

Polymer Imports

37

Product wise Country wise


Import of Finished Goods 2016-2017

Total imports USD 3.7 Bn

(Figs in Mn USD)

• Moulded & Extruded goods

• LED Luminaires

• Shapes & Profiles

• Writing instruments

• Floor coverings

• PVC fabricated goods

• PVC leather cloth

• Ropes/Twines/Yarn/Bristles

• Fish nets/Fishing line

• Pipes/Fittings

• Sheets & film

• Laminates

• Poly-lined jute goods

• Moulded & Soft luggage items

• Lenses

• GRP/FRP products

• Electrical Accessories

• Bangles/Imitation jewelry

• Optical goods

• Solar PV Modules

• Cine X-Ray films

• Toys/Dolls/Games

38 Source : PLASTINDIA FOUNDATION

Finished Plastics Goods Imports

39

Total Exports From India 2016-2017 : USD 7.6Bn Source : PLASTINDIA FOUNDATION

Exports – Product wise 2016-2017

Plastic Sheets, Films,

plates, 966, 19%

Woven Sacks / FIBC,

610, 12%

Other extruded and

Moulded goods, 611, 12%

Packaging items, 517,

10%

All types of Optical

Items, 344, 7%

Ropes, Twines,

Cordage, 276, 5%

Writing Instruments,

222, 4%

Houseware, 202, 4%

Leather Cloth, 119, 2%

Medical Disposable,

143, 3%

Laminates, 151, 3%

Pipes, Tubes, Hoses

etc, 153, 3%

Others, 814, 16%

40

Exports of plastic raw materials and processed goods : USD 7.6Bn

Region wise Exports – 2016-2017

Asia, 42%

Europe , 21%

Americas , 21%

Africa, 16%


41

Plastics Raw Material Exports - 2016-17

Total Exports of Polymers during 2016-17 : 1362 KT Source : PLASTINDIA FOUNDATION

(Figs in KTA)

43

• Number of Organised Recycling Units : 3500+

• Number of Unorganised Recycling Units : 4000+

• Manpower – Direct : 600,000+

• Manpower – Indirect (includes waste pickers) : 10,00,000+

• Quantum of Plastics Recycled : 5.5MMT


Plastics Recycling / Recovery

44

Basis:

• Almost 100% rigid plastics waste are recycled

• ~95% PET bottle waste is recycled

• Recycling of imported plastics scrap continued

• In-house plastics scrap utilized in production process not included

• Feedstock recycling (Pyrolysis) and energy recovery through co-processing

in cement kiln gained acceptance. ~100 KT in 2016-17 which is projected to

go up to 1500 KT 2019-20

• Use of plastics waste in bitumen road construction made mandatory


Plastics Recycling / Recovery

45

• Dhoraji, Gujarat

• Daman

• Vapi, Gujarat

• Dharavi & Bhandup, Mumbai

• Indore, Madhya Pradesh

• Delhi, NCR

• Malegaon & Solapur, Maharashtra

Punjab (Amritsar & Ludhiana)

Jaipur

Ratlam

Ahmedabad

Bhavnagar

Jalgaon

Nasik

Mumbai

Pune

Kozhikode

Kochi

Delhi

Bilaspur Kanpur

Patna

Kolkata

Cuttack Bhubaneshwar

Rajpur

Hyderabad Bengaluru

Chennai Salem

Coimbatore Madurai

Balasore

Estimated quantity of Recycled Plastics : 5.5MMT in 2017-18 ; 7MMT in 2019-20

Plastics Recycling Clusters

Source : ICPE

46

PLASTICS WASTE

MATERIAL RECOVERY

ENERGY RECOVERY

MECHANICAL RECYCLING

FEEDSTOCK RECYCLING

Conversion by Changing Chemical Structure

Monomeric Constituents

of Polymers

Reconversion into Polymers

Gasification

light diesel oil

Reducing Agent

CO-PROCESSING IN CEMENT KILNS

HEAT & POWER GENERATION

Remoulded Into Common Products for Non Critical Usage

Plastics Recycling / Recovery Option

Source : ICPE

Pictorial Representation of ISO 15270: 2008 / IS 14534:2016

47

World’s largest rotomoulded water tank market

• Installed Capacity : 250KTA

• Market size : 235KTA

• Organised Sector Players : 250,Plus many more in unorganised sector

• Percentage growth in 2016-17 around 5%

• Polymers used - PE, EVA, PP, PVC, XLPE

• Share of PE - 80%

• Overhead tank : Loft tank ratio : 85:15

• ~80% of tanks demand is for < 2000liters


Rotomoulding – Market Snapshot

49

• No. of plastic machinery manufacturing units : ~200

• Domestic market : ~USD 508Million in 2016-17

• Machines installed till Mar 2017 : 141,000

• Installed processing capacity : 41.2MMT

• Employment : 1.2Million (direct + indirect)

• Growth in machinery CARG 2017-18 onwards : 11.1%


Plastics Machinery Manufacturing Industry – Present Scenario

50

Process Nos./KTA 13-14 14-15 15-16 16-17 Upto 2016-17

Extrusion Machines Added (Nos.) 1,490 1,535 1,580 1,625 38,000

Installed Capacity (KTA) 1,415 1,510 1,610 1,710 26,000

Injection Moulding

Machines Added (Nos.) 4,560 4,800 5,050 5,300 92,000

Installed Capacity (KTA) 900 960 1,035 1,105 13,500

Blow Moluding

Machines Added (Nos.) 450 470 490 770 11,260

Installed Capacity (KTA) 110 120 135 145 1,900

Total Machines Added (Nos.) 6,500 6,805 7,120 7,695 1,41,260

Installed Capacity (KTA) 2,425 2,590 2,780 2,960 41,400


Machinery Additions – Up to March 2017

51

Installed capacity being ~ double the quantity processed! (Excludes mortality)

No. of Machines Installed

Installed Capacity (KT)

Injection Moulding 92,000 13,500

Blow Moulding 11,260 1,900

Extrusion Total 38,000 26,000

Monolayer Film 11,217 2,130

Multilayer 1,544 1,395

BOPP 38 825

PPTQ Film 3,532 900

Raffia 2,107 3,545

PO Pipes 1,670 2,065

RPVC Pipe 6,225 7,065

Others 11,495 8,020

Total 141,288 41,400


Machinery Additions – Up to March 2017

52

Description 2016-17 2017-18 2018-19 2019-20

IMM 5,300 5,725 6,200 6,675

Extrusion 1,625 1,700 1,775 1,875

BMM 770 970 1,180 1,425

Total 7,695 8,395 9,155 9,975


Plastics Machinery Demand & Growth Projections

Projection for 2017-18 : 7.2%; IMM : 8.0%, Extrusion : 4.8%, BMM : 4.9%


53

Projection for 2017-18 : 8%CAGR

Tonnage Range Sales

2016-17 Sales

2017-18 Est. Sales

2018-19 Est. Sales

2019-20 Est.

Upto 110 T 2,200 2,325 2,475 2,650

125-200 T 1,775 1,925 2,075 2,225

220-275 T 400 450 500 520

350-450 T 525 575 625 700

500-910 T 340 380 450 500

> 910 T 60 70 75 80

Total 5,300 5,725 6,200 6,675

Injection Moulding Machinery Capacity Addition


Total Machines Added (2016-17 to 2019-20) : 7.1% CARG

Growth in domestic machine sale : 8.3%; imports : 5.1%

Plastics Machinery : Growing share of Imports

• Compounding Lines

• Tape Lines and looms

• Multilayer Film plants

• Lamination Plants

• Pipe / Drip extrusion lines

• Injection Moulding Machines

• Blow moulding Machines

• Rotomoulding Machines

• Thermoforming Machines

• Thermosetting Presses

• Compression Presses

• Sheet lines

• Auxiliary equipment


Indian technology competes Globally

• Machinery is produced to current technologies of energy efficiency, high productivity and through-put. • Leading Global brands from Europe, USA, Japan, China and Taiwan have manufacturing presence in India,

through Joint ventures or fully owned subsidiaries • Machineries are produced with automation adaptabilities and Industry 4.0 capability • Indian manufacturers export to 50 countries across the globe, to developing and developed nations. • Exports stand at USD 150 million and growing at 12%

56

• Project investment to the tune of USD 12 Bn

• IM, Pipe, Raffia, Films are Growth Drivers Source : PLASTINDIA FOUNDATION

Opportunities by 2020……. (No. of Machines)

58

0100020003000400050006000700080009000

10000

(No. of Units) Auxiliary Equipment's in Plastics Industry

Product Units Chilling plant 6000

Mould temp. Controller 1200

Drying System

- Hot Air Dryer 4500

- Dehumidified Air Dryer 800

Raw Material Conveying System

- Hopper Loader 9000

- Central Conveying System 150

Volumetric/Gravimetric Blending System

800

Conveyor Belt with Coumting System 600

Granulator 4000

Robot 250 Hot Runners 900

Auxiliary equipment share :10-15% of machinery business

Auxiliary Equipment Industry 2016-2017


59

Comprising : In-house Tool Rooms (Captive) - Mostly with Automotive OEM’s & Tier 1 Suppliers. Commercial Tool Rooms (Manufacturers of Plastics Moulds) - 480 nos.

They cater to Automotive, Consumer Durables, Plastics Products such as Houseware, Furniture, Packaging, Electrical & Electronics.

Total Market Size : USD 977 Mn

USD 223 Mn is Captive

USD 569 Mn is Commercial USD 185 Mn is Imports Source : PLASTINDIA FOUNDATION

Indian Plastics Tooling Industry

Industry Vertical USD Mn

Automotive 318

Plastics Products for Market 315

Consumer Applications 142

Electricals 69

Packaging 63

Electronics 46

General Engineering 5

Others 19

Total 977

Source : PLASTINDIA FOUNDATION1

Indian Plastics Tooling Industry

60

Key Drivers : • Expected GDP Projection: 8% • Indigenization of components by Major OEMs from sectors like Automobile & Consumer Electronics – Increasing trust

on development capability of domestic CTRs • Make in India Initiative • Availability of competent Skilled people, though in lesser numbers • Growing trend towards shorter production runs and customized products

Segment Current Industry Size

USD Billion

Last 5 Year CAGR

Next 5 Year CAGR

Auto OEMs 73 6% 9%

Automotive Components 40 7% 11%

Plastics Processing 20 9% 12%

Electrical Equipments 21 6% 8%

Consumer Durables & Electronics 15 10% 14%

Packaging 5 10% 11%


Industry Growth Drivers

61

Growth Drivers

• Food / Processed food

• FMCG items

• Packaged and fast food industry

• Single serve packs/Power packs

• Textiles and Toys

63

Retail revolution setting pace for growth in packaging Source : PLASTINDIA FOUNDATION

Demand Growth Drivers – Packaging Applications

• Multilayer films

• BOPP Films

• Shrink and Stretch wraps

• Thin wall molding

• Thermoforming

• Blow molded containers

Growth Drivers

• Building and construction

• Public utilities services

• Mega highway projects

• Rural electrification projects

• Mega irrigation projects

• Smart cities / AMRUTH Cities

Applications

• Pipes (gas, water supply, sewerage, OFD, plumbing)

• Storage tanks

• Profiles

• Geotextiles, Geomembrane

• Wire and Cable

64

The 12th plan envisages investment of ~USD 43 bn for water management;

USD 92 bn for irrigation sector; USD 220 bn for power generation Source : PLASTINDIA FOUNDATION

Demand Growth Drivers – Infrastructure

Growth Drivers

• Higher Yield thro’ better water management

• Advanced agricultural technology

• Government spending

• Retailers:- farmers joint initiatives

• Distribution channel / Refrigerated storage

Applications

• Greenhouse films

• Low tunnels

• Micro irrigation:- Drip/Sprinkler

• Mulch films

• Crates, Pallets

65

Bringing about the 2nd green revolution Source : PLASTINDIA FOUNDATION

Demand Growth Drivers – Agriculture

Growth Drivers

• Healthy economic growth

• Higher per capita income

• Greater disposable income

Applications

• Appliances:- Washing machines, Refrigerators, TV’s, Mobile Phones, Computers

• Household:- furniture & toys

• Office, Restaurant & Stadia Furniture

• Luggage

• Houseware


Demand Growth Drivers-Consumer Durables

Growth Drivers

• India as a medical tourism destination

• Growing health awareness

Applications

• Heart valves, hearing aids, spectacles, prosthetics, etc.

• Packaging of medicines, devices etc.

• Disposable products:- Syringes, IV sets, blood bags, diapers, bed covers, pillow covers, gowns, masks, gloves etc.


Demand Growth Drivers – Healthcare

68

Industrial Components

Automotive

3D Printing


Other Growth Areas

Rigid Packaging

69

Digital India Program

• A flagship program of Govt. of India with a vision to transform India into a digitally empowered society • Target:- NET ZERO Imports by 2020 for notified products through

Investments:- USD 100 Bn Production:- USD 400 Bn Employment Generation:- 25 Mn Exports:- USD 30 Bn


% of Total goods imported

Mobile Phones 38.65

Smart TV’s 7.91

Notebooks 5.54

Digital Cameras 4.34

Invertors & UPS 2.65

USB 2.44

STB’s 2.33

LCD Monitors 1.72

Top Product 10% 65.58

Digital India:- Outlook & initiatives under Make in India

70

• National target of 100GW of installation by 2022 and also proactive policies from states like Gujarat are the key drivers for the growth of the solar sector. • Rooftop Solar PV is also becoming increasingly popular. India expected to reach 40GW in Rooftop solar by 2022. • Govt. strongly Implementing the Standards for Solar - Increasing awareness • India has attracted foreign investments to develop solar energy plants

0.8GW 2015

1.4GW

2016-17

100GW by 2022


Solar PV – High growth opportunity

71

• Market growing ~35% YoY

• Current Imports:- 60%

• Government aggressively driving projects/specifications & implementing standards.

• Under UJALA & ESSL schemes Govt. plans to replace by 2019

- No. of LED bulbs:- 770Mn

- No . Of street lights:- 9Mn

• Make not only for India but also for export:- Export incentive 2%

• Rationalised ‘Duty Structure’ for Domestic Manufacturers

• Bulk requirements for Railways, Airport authority, Highways & other large usage projects

Growth Drivers

LED Bulbs (Retrofits) Tube lights Street Lamps


LED : Outlook & initiatives under Make in India

72

.

Sanand

Dahej

Narasapura

Auriaya

Tamot Barjora

Kannur

Tinsukia Panipat

Ibrahimpatnam

Plastic Parks Area (Acres)

Sanand, Gujarat 140

Dahej, Gujarat 100

Narasapura, Karnataka 100

Auraiya, Uttar Pradesh 225

Tamot, Madhya Pradesh 150

Siju village, Odisha 120

Barjora, West Bengal 496

Ibrahimpatnam, Telangana 500

Kannur, Kerala TBC

Tinsukia, Assam 600

Chennai, Tamil Nadu 300

Panipat, Harayana TBC


Plastic Parks – Existing & Proposed

. Siju

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• Growth of machinery industry – Installed capacity CARG of 11.1%

(2016/17 to 2019/20)

• Polymer consumption projected to reach 20MMT by 2020

• Global companies investing in India

• Low import duty on polymer raw materials

• Proposed Government Policies to help growth of plastic industry

- Technology Upgradation Fund Scheme

- Plastic Parks

- MSME & Skill Development

Achievements of India Plastic Processing Industry

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• Established democracy & stable democratic government with favorable economic policies.

• Young population; median age of 24 years

• Setting up of SEZs to overcome bottlenecks of infrastructure and create business friendly policies

• Large pool of scientific and technically trained manpower

• India, the largest market in South Asia. Robust domestic demand

• Rising income levels and changing lifestyles driving demand for plastics

Together We Prosper!

India……..Happening

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• Indian economic fundamentals are robust and continuing amidst uncertainty in global economy

• Huge growth opportunities in India for plastics due to lower per capita consumption as compared to world average

• Flexible packaging industry poised for strong growth, insulated from the current economic scenario due to huge & diversified consumer base

• Planned Infrastructure projects are driving growth in India and these are ably supported by the current and upcoming domestic capacities

Summary

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Disclaimer This presentation contains forward-looking statements which may be identified by their use of words like “plans,”

“expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. Forward-

looking statements are based on certain assumptions and expectations of future events. The Committee referred to

in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized.

The actual results, performance or achievements, could thus differ materially from those projected in any such

forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward

looking statements, on the basis of any subsequent developments, information or events, or otherwise.

The information contained was obtained from various sources believed to be reliable and we do not guarantee its

accuracy. Neither Plastindia Foundation or any of the members of the Committee accepts any liability whatsoever

for any direct or consequential damages or losses arising from any use of this presentation or its contents.

report on indian plastic industry · k. k. seksaria president plastindia foundation i am happy to...

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